Last Updated on December 11, 2024 by Diana Kelley
Hedera Hashgraph is rapidly emerging as a groundbreaking alternative to traditional blockchain networks, offering enhanced speed, security, and scalability. At the heart of this network is the HBAR cryptocurrency, which fuels transactions, smart contracts, and decentralized applications (dApps). As more businesses, developers, and investors turn to Hedera for its innovative solutions and robust governance, the potential for HBAR and its utility continues to grow. Explore the potential of Hedera, its unique technology, and the real-world impact of HBAR in this guide!
What is Hedera Hashgraph
Hedera Hashgraph is a decentralized distributed network designed for transactions and application deployment, utilizing hashgraph technology instead of traditional blockchain. This approach offers faster transaction processing, improved security, and greater scalability. The network is governed by a council of global enterprises, ensuring high performance and strong data guarantees, making it a compelling platform for decentralized applications, cryptocurrency payments, and enterprise solutions. Its native token, HBAR, is used for transaction fees and network security through a unique staking mechanism.
Who Created Hedera
Leemon Baird, an American computer scientist who developed the hashgraph distributed consensus algorithm, created the Hedera Hashgraph algorithm. Baird, a former Air Force Academy professor, founded Swirlds in 2015 and holds patents for his hashgraph technology, which is used by various industries to build custom distributed apps.
With a website, a cryptocurrency, a governing council, and a whitepaper, Baird co-founded Hedera Hashgraph in 2017 and officially launched it in March 2018. In addition to Boeing, Deutsche Telekom, Google, IBM, LG, and others, Hedera’s governing council provides decentralized oversight and strategic direction to major organizations.
How Does Hedera Hashgraph Work
Hedera Hashgraph leverages a directed acyclic graph (DAG) structure, which ensures that data flows do not loop back, making transactions immutable once added. The network employs an asynchronous Byzantine Fault Tolerant (ABFT) consensus algorithm, which offers more efficient, fair, and secure transaction verification compared to traditional blockchain methods, with lower costs and energy consumption.
Instead of using blocks, Hedera’s “gossip about gossip” protocol verifies transaction order and validity individually. Hedera supports smart contracts, enabling decentralized applications (dApps) across finance and other sectors, offering faster, more cost-effective, and secure alternatives to traditional contracts.
What Gives Hedera Hashgraph Value
Technology partners and investors are interested in Hedera Hashgraph because it promises to deliver many of the benefits of blockchain technology while sidestepping technical hurdles that have kept conventional blockchains and cryptocurrencies from scaling up to handle real-world transaction volumes.
The Hedera Hashgraph network is also likely to increase its value as more users, more transactions, and greater market prominence are achieved.
The HBAR token
Hedera has its own cryptocurrency: the HBAR token, which is used to process and secure transactions. HBAR offers a unique feature known as stake and governance, which allows users to participate in the platform’s governance and make critical decisions about its future.
Where to buy and sell Hbar coin
HBAR coin can be bought and sold on several exchanges, such as Binance, Coinbase Exchange, and Bybit. As for crypto lending, CoinRabbit offers options like HBAR loans, along with DASH loan and ADA loan services, all featuring unlimited loan terms to provide flexibility for users.
HBAR Price
HBAR value is impacted by various market dynamics, news events, economic trends, and the overall economic climate. Price movements are also affected by announcements related to Hedera Hashgraph and Swirlds.
In the time of writing this article, HBAR price is $0.04789 with a live market cap of 1,804,735,502.66 USD.
Benefits of taking out a HBAR coin loan
HBAR-backed crypto loans let you access funds without selling your holdings, boosting liquidity, maximizing asset use, and diversifying your portfolio. These loans often have lower interest rates than traditional options, making borrowing more affordable. Plus, HBAR collateral is typically stored securely, adding an extra layer of protection and peace of mind.
Here are some use cases where leveraging HBAR as collateral can be profitable:
- Profit from Market Movements: Crypto loans with a fixed loan-to-value ratio enable you to capitalize on market volatility. For example, if you use HBAR as collateral and its value appreciates significantly during the loan period, you can repay the same initial amount and retain the increased value of your assets. This allows you to gain additional profit while using the loan.
- Large Purchases without Liquidation: By taking a loan secured by HBAR, you maintain ownership of your HBAR holdings while accessing extra funds for major purchases. This way, you can benefit from current value appreciation without needing to sell your assets, even as inflation diminishes the value of fiat currencies over time.
- Tax Optimization: In certain jurisdictions, selling crypto assets may trigger capital gains taxes of up to 40%. However, taking a loan against your HBAR does not constitute a taxable event, allowing you to maximize tax efficiency and access liquidity without selling your investments.
How to Get a HBAR Loan: A Simple Step-by-Step Guide
The process for obtaining an HBAR crypto loan has been streamlined and made highly accessible, thanks to user-friendly platforms like CoinRabbit. The platform offer various options, including USDC loan services, to provide users with greater flexibility and tailored solutions for their financial needs. With just a few simple steps, you can leverage your HBAR holdings to access liquidity quickly and efficiently:
1. Select HBAR as your preferred collateral on the homepage under the Loan Calculator section.
2. Enter the amount of HBAR you wish to use as collateral. The calculator will display the loan amount you can receive— click “Get Loan” to proceed.
3. Confirm your details, provide your stablecoin address, and verify your email after clicking “Get Loan.”
4. Send your HBAR to the provided address. Once your collateral is received, your loan will be disbursed immediately.
Conclusion
HBAR, the native cryptocurrency of Hedera Hashgraph, offers unique advantages when used for crypto loans with platforms like CoinRabbit. Crypto loans can help investors and holders optimize taxes, make significant purchases, reinvest in new assets, and more — all while retaining ownership of their digital assets.
However, it’s crucial to remember that all crypto operations come with inherent risks. When taking out a loan with any lending platform, always monitor the status of your loan and add collateral as needed to avoid liquidation.
